$\underline{First\ question}$
Let $P(n)$ be a proposition about $n$. In standard mathematical induction, we require:
(1)$P(0)$ holds.
(2)If $P(n)$ holds, $P(n+1)$holds.
Here we use "the axiom of induction" to prove $P(n)$ holds for all $n$.
However, I can't figure out why "the axiom of induction" is necessary.
For arbitrary $n\in \mathbf{N}$, $P(n)$ holds without the axiom in my opinion.
[edited from here]
If the above assumption (1) and (2) holds,
for any given $n\in\mathbf{N}$, $P(2) = P(1+1), P(3)=P(2+1), \dots, P(n)=P((n-1)+1)$ holds.
[edited to here]
"Arbitrary" and "all" may be different, but if we write these two with logic symble,$\forall n\in\mathbf{N}$ ($P(n)$), the same.
If we want to use the result of the proposition, say, $P(100)$, $P(100)$ evidently holds without the axiom, in my opinion. Why we have to prove $P(n)$ for "not any of $\mathbf{N}$" but "all of $\mathbf{N}$"?
$\underline{Second\ question}$
Please assume we have proved: $\forall n \in \mathbf{N}$, the number of elements
in $\{1, 2, \ldots, n\}$ is finite. By induction, we have proved for all $n \in
\mathbf{N}$ this proposition holds. Then, why $\mathbf{N}$ is an countable infinite set. I have know idea what is laid between finite and countable infinite.
First Question: You say "in your opinion". Try to prove it, then, and we will show the flaw.
Second Question: You proved every $I_n:=\{1,...,n \}$ is finite. "By induction", you just repeat it: you proved that for every $n \in \mathbb{N}$, the property holds, meaning: every $I_n:=\{1,...,n \}$ is finite. $\mathbb{N}$ is none of those $I_n:=\{1,...,n \}$, so why do you assume $\mathbb{N}$ is finite?